Credit Unions

The FSCS will usually be notified by the FSA that a credit union is insolvent. The FSCS can pay compensation for financial loss of up to £85,000 if a credit union is unable to pay back deposits it owes to its members.

How we handle claims for compensation against a credit union

  1. Before the FSCS can pay claims for compensation it must be satisfied that the credit union is unable to pay back money it owes to its members (described by us as being "in default"). We look at the credit union's records to help us decide this. A declaration of default by the FSCS opens the way for members of the credit union to be paid compensation.
  2. Members of the credit union will not need to apply for compensation. The FSCS will send their compensation to them automatically.
  3. The FSCS will aim to pay compensation in the vast majority of cases within seven days, and pay any remaining claims, which are likely to be more complex, within twenty working days.

If you think you have a claim against a credit union

If you think you have a claim against a credit union but are not contacted, you can now start the process by completing an Initial Enquiry Questionnaire.  

If you are worried about what is happening with your claim, please contact us.

The FSCS will usually pay compensation by cheque or cash over the counter through Post Offices.

You may also find our Questions and Answers section helpful.